Circle Gets New York Trust Charter for Custody Services
In brief
- Circle Internet Trust Company LLC obtains limited purpose trust charter from New York DFS
- Charter enables fiduciary powers, custodial services, investment management, and securities clearance
- Circle issues USDC stablecoin, second-largest with $71.8 billion market cap
Regulatory milestone for Circle
Circle was the first company to receive a NYDFS BitLicense in 2015, establishing itself as a pioneer in New York's regulated crypto ecosystem. The trust charter represents a step forward in the company's regulatory standing. Circle CEO Jeremy Allaire said in a statement that "earning a New York trust charter has been a longstanding objective for Circle given the regulatory clarity that comes with it."
USDC's position in the market
Circle issues USDC, the US dollar-pegged stablecoin with a market capitalization of $71.8 billion. USDC ranks as the second-largest stablecoin behind Tether USDt (USDT) and the fifth-largest cryptocurrency overall. The trust charter enables Circle's subsidiary to provide custody and fiduciary services that support institutional adoption of the stablecoin and related financial products.
Frequently asked questions
What can Circle do with a limited purpose trust charter?
The charter permits Circle's subsidiary to exercise fiduciary powers and conduct custodial services, investment management, corporate trust, transfer agency, and securities clearance. However, it does not grant the general power to accept deposits or make loans like traditional banks.
Why is this charter significant for Circle?
Circle CEO Jeremy Allaire stated that earning the charter has been a longstanding objective because it provides regulatory clarity. Combined with Circle's 2015 BitLicense status, it strengthens the company's standing in New York's regulated crypto ecosystem.
What is USDC and how large is it?
USDC is a US dollar-pegged stablecoin issued by Circle with a market capitalization of $71.8 billion. It is the second-largest stablecoin behind Tether's USDT and ranks as the fifth-largest cryptocurrency overall.
